A decrease in real money supply caused by an increase in the price level is graphically represented by
A. a shift of the AD-curve to the right
B. a shift of the AD-curve to the left
C. movement along the AD-curve to the right
D. movement along the AD-curve to the left
E. a shift of the AS-curve to the right
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The natural rate of unemployment is
A. always zero
B. the unemployment rate that exists when inflation is zero
C. the unemployment rate that exists when output is assumed to be at its full-employment level
D. the unemployment rate that exists above frictional unemployment
E. none of the above
Frictional unemployment is defined as
A. all unemployment above the natural rate
B. unemployment that is cyclical in nature
C. the natural unemployment rate minus cyclical unemployment
D. unemployment resulting from people shifting between jobs and looking for new jobs
E. any unemployment that is above 6%
If output is at its full-employment level, then
A. the actual unemployment rate is zero
B. the natural rate of unemployment is zero
C. there are no frictions in the labor market since wages have reached their market-clearing level
D. there is still some positive level of unemployment due to frictions in the labor market
E. nobody who is currently employed is looking for a new job
Which of the following countries is NOT one of the "Asian Tigers"?
A. Hong Kong
B. Japan
C. Singapore
D. South Korea
E. Taiwan
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